For those investors that are beating down the door to buy the Facebook IPO, it might be a good idea to think about why insiders are willing to sell their stock. It doesn’t mean that the price won’t rise or that in 5 years the market cap won’t be double what it is currently, but the margin of safety is not there. I’d much rather own a bank or insurance company trading at 50-60% of tangible book value, where I get all of their future profit potential for free.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.